2015 (4) TMI 1089 - HC - VAT and Sales Tax

Entitlement for benefit of Notification No.P.4 (8) Finance/Group-4/91-110 dated 6/3/1991 - Assessee is carrying on business of copper and purchase of copper and thereafter manufacturing electric wire and cable and sale thereof - Assessing officer denied benefit of notification on the ground that the final product was not electric wire and cable and it does not fall within the definition of cable - Held that - the Tax Board has correctly analyzed the Notification dated 6/3/1991 where the intention of the Government was that lower rate is required to be kept if the purchase of copper was to be made in manufacturing of products made of copper and when the assessee has used the said copper in manufacturing of electric wires and cables therefore benefits as per Notification cannot be denied. The copper has been used in product which is being manufactured by the Assessee and thus is fully covered within the Notification dated 6/3/1991. The Assessing Officer in the assessment order has not been able to prove that the copper which was purchased by the assessee has not been put to use in manufacturing of electric wire and cable and when even the Assessing Officer has not been able to prove contrary then the finding of fact arrived by the Tax Board as also by the Deputy Commissioner (Appeals) is in line of the Notification. Also the revenue was unable to pin-point how the copper was not used in the product manufactured by the assessee. Therefore, when definite finding has been reached by the Tax Board, then no question of law can be said to arise out of the order of the Tax Board. - Decided against the revenue

Summary

Issues: Interpretation of sales tax notification regarding purchase of copper for manufacturing electric wire and cable.

In this case, the petitioner, an assessee engaged in the business of manufacturing electric wire and cable, claimed a benefit under a specific sales tax notification for the purchase of copper. The assessing officer initially rejected the claim, stating that the final product did not fall within the notification's definition. However, the Deputy Commissioner (Appeals) and the Rajasthan Tax Board both allowed the claim after analyzing the notification and determining that the product manufactured by the assessee fell within its ambit. The court observed that the intention of the government, as per the notification, was to provide a lower rate if copper was used in manufacturing products made of copper. The court found that since the copper purchased by the assessee was used in manufacturing electric wire and cable, the benefits under the notification could not be denied. The court noted that the assessing officer failed to prove that the copper was not utilized in the manufactured product. As a result, the court upheld the findings of the Tax Board and the Deputy Commissioner (Appeals), stating that no question of law arose from the Tax Board's order. The court concluded that there was no infirmity in the Tax Board's decision, and the revision petition was dismissed.